NDIAN FIRM TO CONDUCT FEASIBILITY STUDY FOR CHEMICAL FERTILIZER PLANT
KATHMANDU, Dec 20: Investment Board Nepal (IBN) has awarded the contract to study feasibility study for setting up a chemical fertilizers plant in Nepal to an Indian firm. According to a press release issued by IBN, Radesh Panta, CEO of IBN, signed contract agreement with Padmanabhan Nair, international business president of Infrastructure Development Corporation Karnataka (iDeCK), on Friday.
As per the contract, iDeCK, in association with Institution of Agricultural Technologists (IAT) and Shah Consult International Pvt Ltd, will conduct the feasibility study. The Indian firm will submit feasibility study report within twelve months. Among others, the study will cover economic and financial analysis after establishing the fertilizer plant, appropriate technology for the plant, details about employment generation, and environmental and social impact assessment and mitigation measures.
Establishment of chemical fertilizers plant is expected to be a milestone in Nepal's agricultural sector as the 66 percent of the country's total population is involved in farming. One-third of Nepal's GDP comes from the agriculture sector.
IBN has said that the country needs 500,000 tons of chemical fertilizers annually but only about half of the demand is met though imports. IBN had invited expression of interest in September 2014 for the purpose. A separate study commissioned by the Ministry of Agricultural Development in 2012 had estimated the existing annual demand for chemical fertilizers at around 700,000 tons. The country imported 195,000 tons of chemical fertilizers in 2013/14. The figure excludes informal imports made by farmers on their own.
A feasibility study carried out by Japan International Cooperation Agency (JICA) in 1984 had suggested to the government to set up a plant with annual capacity of 100,000 tons.